Cheshire Mortgage Corporation has been highlighted as the lender with the highest SVR in the mortgage market - currently 12.5%, more than double the industry’s average of 4.79%.
Research from Largemortgageloans.com shows that out of 62 mortgage lenders, Cheshire Mortgage Corporation, part of the Blemain Group, has the highest SVR, with Direct Line the lowest at 2%.
GE Money Home Lending’s igroup charges the second highest SVR at 8.59%, with Lloyds, Nationwide and Cheltenham & Gloucester coming in as joint second lowest at 2.50%.
Cheshire Mortgage Corporation offers adverse residential mortgages, shared ownership and bridging finance.
One broker, who wishes to remain anonymous, says: “The adverse credit sector desperately needs more competition. Because Cheshire Mortgage Corporation is one of the only lenders offering adverse deals it can charge a high SVR and borrowers can’t remortgage elsewhere.”
Nobody from CMC was available for comment.
The research also shows that overall the lenders with the highest SVRs are building societies.
Last week Nationwide increased the SVR on residential and self-cert mortgages with The Mortgage Works and increased the SVR for some UCB Homeloans customers.
But Paul Welch, managing director of largemortgageloans.com says sometimes it is good news for brokers when lenders start to increase their SVRs.
He says: “It’s a question of survival for brokers at the moment and if lenders are changing their SVRs it gives brokers a reasonable excuse to get in touch with clients and see if they can get them a better deal.”